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A firm is currently valued at $390 in a boom and $185 otherwise. The chance of a boom is 28 percent. What is the value

A firm is currently valued at $390 in a boom and $185 otherwise. The chance of a boom is 28 percent. What is the value of the firm to the shareholders if the firm owes $230 to its debtholders?

A) $0

B) $12.40

C) $44.80

D) $28

E) $32.40

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